How did Texas tax towable dollies, jeeps, stingers, auxiliary axles, and converter gears beginning September 1, 1991?

Plain-English summary

The Comptroller mailed this general notice to county tax assessor-collectors and 5,678 taxpayers. Effective September 1, 1991, towable dollies, jeeps, stingers, auxiliary axles, and converter gears were included in the definitions of trailers and semitrailers.

They shifted from limited sales, excise, and use tax to motor vehicle sales and use tax or interstate motor carrier tax. County offices collected motor vehicle tax and could issue receipts for "tax purposes only" when no title or registration was required. Interstate motor carriers paid IMC tax directly to the Comptroller.

The taxpayer version also said rental businesses should hold a motor vehicle retailer's permit and collect motor vehicle tax on rental receipts.

What this means for you

This is a historical implementation notice, not a ruling on one taxpayer's facts. Verify current vehicle definitions, tax treatment, permits, forms, and payment procedures.

Common questions

Q: When did the announced change take effect?

A: September 1, 1991.

Q: How were units used interstate by interstate motor carriers taxed?

A: Under the historical IMC tax.

Q: What did the notice tell rental businesses?

A: Hold a motor vehicle retailer's permit and collect motor vehicle tax on rental receipts.

Citations and references

• The notice referred to amendments enacted by the 72nd Legislature but cited no bill or code section.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9107L1122F01

Original ruling text

Note: This document is also STARRED as a sales tax document under 9107112L.

July 26, 1991

MAILED TO ALL COUNTY TAX ASSESSOR-COLLECTORS

Dear

The 72nd Legislature recently amended motor vehicle tax laws that affect the
taxability of certain sales, rentals and purchases. Effective September 1, 1991
towable dollies, jeeps, stingers, auxiliary axles and converter gears purchased
in this state or brought into Texas will be included in the definition of
"trailer" and "semitrailer" and taxed under motor vehicle sales and use tax or
interstate motor carrier sales and use tax (IMC tax).

These items were previously taxed under limited sales, excise and use tax.

In situations where no title or registration is required and the purchaser
intends to remit the tax to your office, it will be necessary for you to
collect the tax and issue a receipt for "tax purposes only."

Units that are used interstate by interstate motor carriers are subject to the
IMC tax, which should be submitted directly to the Comptroller on the IMC
return.

If you have any questions, please call toll free at 1-800-252-5555. Our Austin
number is 512/463-4600.

Sincerely,

JOHN SHARP
Comptroller of Public Accounts

July 26, 1991

MAILED TO 5,678 TAXPAYERS

Dear Taxpayer:

The 72nd Legislature recently amended motor vehicle tax laws that affect the
taxability of certain sales, rentals and purchases. Effective September 1,
1991, towable dollies, jeeps, stingers, auxiliary axles and converter gears
purchased in this state or brought into Texas will be included in the
definition of "trailer" and "semitrailer" and taxed under motor vehicle sales
and use tax or interstate motor carrier sales and use tax (IMC tax).

These items were previously taxed under limited sales, excise and use tax.

Trailers or semitrailers purchased for use only in this state are subject to
motor vehicle tax, which is paid to the County Tax Assessor-Collector by the
purchaser at the time of registration. If the unit is not registered, the motor
vehicle tax may be paid either to the Assessor-Collector or directly to this
office.

Sellers should provide a completed Seller, Donor or Trader's Affidavit
indicating the sales price to the purchaser. These forms are available at the
County Tax Assessor-Collector's office or from the Comptroller. Units that are
used interstate by interstate motor carriers are subject to the IMC tax, which
should be submitted directly to the Comptroller on the IMC return.

Businesses that rent these units should hold a motor vehicle retailer's permit
and collect motor vehicle tax on the rental receipts.

If you have any questions, please call toll free at 1-800-252-5555. Our Austin
number is 512-463-4600.

Sincerely,

Lucy Glover
Manager
Tax Administration Division